This fortieth first trading week of 2013 comes to a close as investors with the markets rallying during the second half of the week on hopes the US government will end the shutodwn.
Hi. I'm Sayoko Murase. Welcome to the 'Weekly Market Wrap' for October 11, 2013.
The Dow Jones Industrial Average and the S&P 500 are both higher for the week, but the Nasdaq is still trading lower.
Crude oil futures are lower this week, trading around $101 per barrel on Friday afternoon.
And Gold futures are lower this week, trading around $1,270 an ounce in Friday afternoon trading.
In notable economic news this week, the Labor Department reported that initial jobless claims jumped by 66,000 to a seasonally-adjusted 374,000 claims. The big jump was partially the result of the California system being backed up for the last few weeks as the computer systems were upgraded, but a large percentage was also related to the government shutdown.
In corporate news, Jos. A. Bank (NASDAQ:JOSB) announced it has proposed to acquire the Men's Wearhouse (NYSE:MW) in a deal worth $2.3 billion. Shareholders would receive $48 per share in cash, a premium of about 42% over the stock's closing price on September 17th -- the day the companies initially spoke of the deal. The Board of Directors for the Men's Wearhouse rejected the unsolicited bid.
SolarCity (NASDAQ:SCTY) announced it would acquire privately held Zep Solar in a stock deal worth about $158 million. Zip Solar provides the mounting systems already used by SolarCity and will provide cost savings for the company going forward.
Wells Fargo (NYSE:WFC) reported third quarter earnings of $5.6 billion, or 99 cents per share, as revenue fell to $20.5 billion. While the bank topped Wall Street estimates for earnings by two cents per share, there were noticeable slowdowns in terms of mortgages originated.
Vonage Holdings (NYSE:VG) announced it has agreed to buy privately-held competitor Vocalocity for approximately $130 million. The deal included $105 million in cash and an additional $25 million in stock. Vocalocity focuses on the market for small to medium sized businesses, typically with 20 or fewer employees.
This is the 'Weekly Market Wrap' for Friday October 11, 2013. Please join us on Monday for the Week Ahead Market Report.
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